Ugandan Government Introduces Tax Reform Bills, Proposes NIN as Tax Identification Number

Kampala, Uganda – The Ugandan government has unveiled four key tax reform bills aimed at simplifying the country's tax system, enhancing compliance, and improving revenue collection. The proposals, introduced by Henry Musasizi, the Minister of State for Finance, include a notable change—using the National Identification Number (NIN) as a Tax Identification Number (TIN), which is expected to streamline tax administration and curb tax evasion.

The four bills—Tax Procedures Code (Amendment) Bill 2025, Income Tax Bill 2025, Hides and Skins (Export Duty) (Amendment) Bill 2025, and Value Added Tax (Amendment) Bill 2025—are designed to reform various aspects of Uganda's tax regime, making it more efficient and less prone to evasion.

Key Proposal: NIN as TIN

One of the most significant changes proposed in the bills is the use of the National Identification Number (NIN) as the Tax Identification Number (TIN) for all taxpayers. Currently, individuals and businesses must apply for separate TINs, a process that can sometimes complicate tax registration and compliance. By adopting the NIN as TIN, the government aims to reduce administrative hurdles and enhance taxpayer identification, ultimately strengthening the tax system and minimizing tax evasion.

“We are proposing to use the National Identification Number as a Tax Identification Number to enhance taxpayer identification and reduce tax evasion,” Musasizi said during the unveiling of the bills.

Bujagali Tax Exemption Extension

In addition to the NIN proposal, the bills also include a provision to extend the tax exemption for Bujagali Electricity Limited, the operator of the Bujagali hydropower plant, until 2032. This exemption, originally set to expire in 2022, is expected to continue supporting Uganda’s energy sector, ensuring affordable electricity generation for the country and driving economic growth.

Tax Waiver for Outstanding Liabilities

Another major proposal is the introduction of a clause in the Tax Procedures Code that grants taxpayers a waiver on interest and penalties if they clear their principal tax obligations. Under the proposed amendment to Section 47B of the Tax Procedures Code Act, taxpayers who settle their outstanding tax liabilities by 30th June 2026 will have any interest and penalties outstanding as of 30th June 2024 waived.

“This waiver is designed to encourage taxpayers to clear their outstanding tax liabilities and promote compliance, reducing tax disputes and fostering a positive relationship between the taxpayer and the government,” Musasizi explained.

Aimed at Boosting Revenue and Compliance

The proposed reforms come at a time when the Ugandan government is working to increase tax revenue collection and expand the country’s tax base. By simplifying processes, promoting timely payments, and incentivizing compliance, the government hopes to achieve a more effective and sustainable tax system.

The four tax bills will now be presented to Parliament for further scrutiny before they can be enacted into law. Once approved, the changes could mark a significant shift in Uganda’s approach to tax administration, with potential long-term benefits for both the government and the economy.